Sandbanks ferry set for inflation-linked pricing
- Published
A chain ferry service is set to link its ticket prices to inflation to cope with a "heavy financial strain", its operator has warned.
The Sandbanks Ferry Company said it would change its pricing on crossings between Sandbanks and Studland on the Dorset coast.
It warned the business faced pressure from increased corporation tax and a fall in income.
The ferry saves motorists a 25-mile (40km) journey by road.
The ferry company, which was established by an act of parliament in 1923, was given permission by the Secretary of State for Transport in 2021 for annual car fare increases of 3.75% on average until 2031.
The deal was allowed after a public inquiry held by the Planning Inspectorate, which had previously rejected a fare increase application in 2018.
The ferry company is now requesting the Department for Transport for permission to replace it with annual increases based on the Consumer Prices Index (CPI).
The change would mean car fares initially increasing from £5.20 to £5.97.
The firm is proposing, external to increases fares for pedestrians, cyclists and motorcyclists for the first time since 2009, initially from £1 to £1.66.
It also wants to raise bulk purchase discounts for those groups, while gradually lowering discounts for all other vehicles including cars, lorries, coaches and buses.
Future annual fare rises would see cars pay up to £7.13 for the crossing between Sandbanks and Studland in 2031, rather than £6.75 under the current agreement.
December's CPI figure was 4%, having peaked at 11.1% in October 2022.
Managing director Jason du Toit said its costs had "risen exponentially whilst income has fallen in real terms".
"To ensure the continued operation of the ferry service beyond the next decade we have explored all options open to us," he added.
The current vessel, Bramble Bush Bay, entered service in 1994.
It resumed service in February 2023 after several months out of action after being badly damaged while being towed to Falmouth, Cornwall, for planned maintenance.
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